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{
"id": 1527698,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1527698/?format=api",
"text_counter": 102,
"type": "speech",
"speaker_name": "Sen. Ali Roba",
"speaker_title": "",
"speaker": null,
"content": "stabilized. Key contributors to the decline in overall inflation are consistent with negative growth in fuel and food prices in the country between January, 2024 and January, 2025, especially due to currency appreciation of the Kenya shilling, which now stand at about 128.5 to the dollar. Under the revenue outlook, the projected total revenue collection for the Financial Year 2025/2026 is Kshs3,385.8 billion, which is about 17.6 per cent share of the Gross Domestic Product. This represents an improvement of 11 per cent, which translates to Kshs325.8 billion. Relative to this projection of Kshs3.60 trillion for the financial year 2024, the outlook is better. The Government expects to collect Kshs2,825,000,000 as ordinary revenue and Kshs550.7 billion from ministries in the form of appropriation-in-aid. In the first half of 2024/2025, our economy's total performance fell short of the target by Kshs107.7 billion from the projected Kshs1,442,300,000,000 as of December 2024, with a collection that was realised of Kshs1.3 trillion. This was majorly occasioned by the underperformance of ordinary revenue to the tune of about Kshs93.3 billion. The 2025 Budget Policy Statement proposes several initiatives to improve revenue collection, including operationalising national tax policy and the medium-term revenue strategy from 2025/2026 to 2026/2027. The proposed overall budget for the Financial Year 2025/2026 is projected to be Kshs4.336 trillion, which is 9.8 per cent, translating to Kshs387.7 billion above the approved expenditures in Supplementary Estimates One for the Financial Year 2024/2025. The main drivers of the increase in the proposed expenditures are the national Government ministerial expenditures, which are set to increase by 11 per cent, translating to Kshs261.6 billion. Increased expenditures under Consolidated Fund Services (CFS) of Kshs131 billion, and the projected fiscal deficit for Financial Year 2025/2026 at Kshs831 billion, which stands at 4.3 per cent of the Gross Domestic Product (GDP), from the actual borrowing for Financial Year 2023/2024, which was Kshs880.5 billion. Mr. Speaker, Sir, the shareable or ordinary revenue is expected to grow from the projection of Kshs2,575.9 billion at the end of Financial Year 2024/2025 to Kshs2,835 billion in the Financial Year 2025/2026. Out of this, the Budget Policy Statement (BPS) proposes to allocate Kshs405.1 billion to county shareable revenue, which is equivalent to 14 per cent of the shareable revenue. This is translating to about Kshs17 billion increase from the current Kshs387.4 billion allocated in Financial Year 2024/2025. Mr. Speaker, Sir, the Government proposes an additional allocation to county government to the tune of Kshs69.8 billion in the Financial Year 2025/2026 as additional revenues to county governments. The additional resources are Conditional Grants, translating to Kshs12.89 which is directly from the national Government share, and proceeds from loans and grants from development partners, translating to Kshs56.91 billion. Mr. Speaker, Sir, in the Financial Year 2025/2026, the Government proposes to allocate Kshs10.5 billion to the Equalization Fund, out of which Kshs7.8 billion is the 0.5 per cent constitutional requirement and Kshs2.7 billion as contributions towards arrears; which has never literally worked. The arrears now stand at almost 39 billion. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}